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Caja Madrid, Spain's second-largest savings bank, will create a holding company for its investments and float the unit later this year, despite the share price of domestic rival La Caixa's investment portfolio dropping 19% since its listing in October.

Caja Madrid said it would group its strategic stakes in financial services companies into a holding company, which it would float in Madrid this year to raise as much as €2.5bn ($4bn), according to Reuters. It did not reveal if it had appointed banks for the listing.

Caja Madrid could not be reached for comment.

Its rival La Caixa made history with Spain's largest initial public offering on record, raising €4.8bn when it floated Criteria Caixa, the holding company of its investments, last October.

However, since the listing shares in the unit have fallen by 19%. Stock was originally priced at €5.3 for the float, but was trading at €4.3 at 11.00 GMT today. Morgan Stanley was lead adviser on the deal.

Caja Madrid revealed yesterday that it had bought City National Bank of Florida in the US for €618m, in what it said was its biggest international acquisition yet.